Finance Uncategorized

FIFA gives Brazil $100 million for World Cup Legacy Fund

FIFA has announced a $100 million World Cup Legacy Fund for Brazil.

(Mark J. Rebilas-USA TODAY Sports)
(Mark J. Rebilas-USA TODAY Sports)

FIFA announced a $100 million World Cup Legacy Fund for Brazil to help with grassroots efforts such as medical and health projects, sports facilities, and youth and women’s soccer programs.

Jerome Valcke, FIFA Secretary-General, said the project is aimed at “ensuring that the FIFA World Cup leaves a tangible legacy in the host country.” $60 million of the fund will be directed at the 15 Brazilian states that did not host a match.

In the wake of financial scandals like the public financing of the stadium projects, FIFA will take charge of the funding and monitoring of the money, and will conduct independent audits of the spending. The Brazilian Football Association is charged with project proposals and implementing the funds.

FIFA President Sepp Blatter. (Dmitry Lovetsky-AP Photo)
FIFA President Sepp Blatter. (Dmitry Lovetsky-AP Photo)

FIFA President Sepp Blatter has now given $100 million to both South Africa and Brazil. This is a small consolation prize considering Brazil sptn $16 billion while FIFA received a $4 billion profit. The Brazilian government has claimed that the World Cup added over one million jobs and boosted the economy by $14 billion through “initial, direct, indirect and induced impacts.” Despite these claims, the Labor Ministry’s official payroll database revealed that job creation during the World Cup fell to its slowest pace in almost two decades, with just 25,363 new hires in June 2014. Thoug Jankiel Santos, chief economist at Espirito Santo Investment Bank in Sao Paulo, believes it was a “net positive experience,” the World Cup failed to deliver the investments in infrastructure and production capacity that were promised.

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